base year

Definition

The year used as the basis for comparison by a price index such as the CPI. The index for any year is the average of prices for that year compared to the base year; e.g., 110 means that prices are 10% higher than in the base year. The base year is also the year whose prices are used to value something in realterms or after adjusting for inflation.

Use base year in a sentence

“
You should try and have as good of a base year as you can and that way you may get a good size bonus.
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